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RESPONSIBLE INVESTING

Driving value responsibly and sustainably

NBPE’s Manager, Neuberger Berman, is a global leader in Environmental, Social and Governance (ESG) investing. The Manager has been ESG-integrated in private equity investing since 2007 and was awarded an A+ Top Score in the most recent UN-supported Principles for Responsible Investment (PRI) assessment.

Centered on NBPE’s objective to deliver better investment outcomes, the Board has adopted a Responsible and Sustainable Investment Policy. The policy is subject to review by NBPE’s Board and the Manager’s ESG (Environmental, Social and Governance) Committee.

The Manager uses a reputable, recognised third party to identify companies with past ESG controversies and violations, with the understanding that there may be coverage gaps of non-listed company names. The Manager provides the Board with an update on investments and ongoing monitoring in the context of the policy as well as compliance and adherence with the policy.

 
ESG feature
ESG in Private Equity

NB Private Markets also leverages Neuberger Berman’s broader ESG capabilities and resources, including ESG policy and climate strategy, proprietary ESG ratings and data analytics.1

Neuberger Berman has longstanding experience in responsible investing, considering environmental, social and governance factors as important drivers of long-term investment returns from both an opportunity and a risk mitigation perspective.

 

 

Three Pillars of NBPE’s ESG Policy and Implementation

 

NBPE believes investing responsibly and the incorporation of material ESG considerations can help inform the assessment of overall investment risk and opportunities, which we include as a standard part of our process.

avoid
1. Avoid

  • Ability to exclude particular companies or whole sectors from the investable universe
  • NBPE seeks to avoid companies that produce controversial weapons, tobacco, civilian firearms, fossil fuels and private prisons. NBPE also seeks to avoid companies with known serious controversies related to human rights or serious damage to the environment, including as outlined by the United Nations Global Compact (UNGC) and OECD Guidelines for Multinational Enterprises.

asess
2. Assess

  • Considering the valuation implications of ESG risks and opportunities alongside traditional factors in the investment process
  • Material ESG factors are formally incorporated in Investment Committee memorandums

amplify
3. Amplify

  • Focusing on “better” companies based on environmental, social and governance characteristics
  • Simultaneously seeking to minimize exposure to companies with potential adverse social and/or environmental impacts

NBPE’s Portfolio through an ESG Lens

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28%

of the portfolio is deemed to have an overall positive sustainability potential or have an overall positive benefit to people or the environment.

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99%

of NBPE’s portfolio does not have significant adverse sustainability potential

As at 31 August 2021.

 
ESG Feature 2

 

NB Private Markets considers ESG factors as a standard part of the investment process. NB Private Markets is focused on long-term partnerships and engages with partners to promote ESG integration best practices.

NB Private Markets integrates ESG considerations throughout the investment process, which it believes can lead to more consistent and better investment outcomes by helping to identify both material risks and opportunities to drive value. The Manager is focused on long-term partnerships and engages with partners to promote ESG integration best practices. Follow the link below to read the full NB Private Market’s 2020 ESG Report (23,400 KB).

A+

Ratings by UN PRI for Private Equity ESG Integration2

1989

First dedicated ESG-integrated strategy

~80%

Of firm assets are ESG-integrated3

160

Colleagues in ESG across committee and working groups

1Subject to Neuberger Berman’s policies and procedures, including certain information barriers within Neuberger Berman that are designed to prevent the misuse by Neuberger Berman and its personnel of material information regarding issuers of securities that has not been publicly disseminated.

2Awarded by UN-supported Principles for Responsible Investment. Please refer to https://www.nb.com/en/global/esg/collaboration for further details surrounding the award, including the award’s criteria. Awards and ratings referenced do not reflect the experiences of any Neuberger Berman client and readers should not view such information as representative of any particular client’s experience or assume that they will have a similar investment experience as any previous or existing client. Note that awards and ratings are not indicative of the past or future performance of any Neuberger Berman product or service.

3Based on AUM as of 9/30 including strategies in late or final stages of approval by firm’s ESG committee.